
6 | Chapter 1
Box 1.1 Economic Systems
There are three types of economic systems—capitalism,
communism, and mixed.
1. Capitalism believes in private ownership of
production and distribution facilities. The United
States, Japan, and the United Kingdom are examples
of capitalist countries.
2. Communism is a system where the state owns all
the factors of production and distribution. Cuba is
an example of the last remaining predominantly
communist country.
3. Mixed economic system is one where the major
factors of production and distribution are owned,
managed, and controlled by the state. France,
Holland, and India are examples of mixed
economies. ...